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Things You Do Not Know About Passive Real Estate Investing

Things You Do Not Know About Passive Real Estate Investing

Today, most average working professionals are looking for ways to invest their hard-earned money into something that will provide smooth and good returns. It is because of this reason, most real estate investments have increased from the last few years because it is the best way to invest and enjoy quality returns. Moreover, 90% of rich people have a major portion of their capital into real estate investments. The best example is Kanye West who was recently featured in the Forbes annual list of billionaires, a person who has an estimated $81 million in real estate. However, they are not real estate experts, yet they enjoy all the advantages of owning the best properties. Well, you do not have to focus on the rich but aim at generating more money by investing in the right place.

Hence, if you are thinking about the key advantages of passive commercial real estate investing and searching about the best practices, check the points given below.

What is passive income?

A simple definition of passive income is the returns derived from organizations or investments where the person is not actively involved. Compared to active income, passive income allows wealth generation for a long time after the implementation of foundational work. When it comes to passive income, the goal of most people is to create a sustainable revenue stream that will surpass their earned income after a point of time.

Why is Commercial Real Estate a good option for building passive income?

When you are thinking about passive income investment opportunities, there is nothing better than commercial real estate. It is a fantastic process of enjoying quality returns from a real asset which is driven by some key factors.

  • Irrespective of the business cycle, the need for commercial real estate in the economy makes it one of the best investment options in contemporary times. This fact is highly evident in the entire economy, like office spaces are required to manage a business, a warehouse is necessary to store products, raw materials, and equipment as well as you need shopping malls to sell various items.
  • At the same time, the lease agreements of commercial real estate properties are very long in nature that allows continuous rental cash flows. Generally, a lease can be as short as six months or as long as the landlord and tenant agree to the time, which can be 30 years or more.
  • Commercial real estate is nothing less than a cash-driven investment that is devoid of any emotional drivers, unlike other assets like residential properties.
  • The lease agreements may include clauses for fixed increases after a chosen period of time, which can be annual. In this way, it helps for the growth plus certainty of income throughout the lease term.

Overall, commercial real estate is a great way to build a continuous source of revenue. However, one should review the investment opportunity before investing.

For more information and help regarding commercial real estate investments, contact Wealth BCI today.


Disclaimer

This Property Summary has been prepared solely for, and is being delivered on a confidential basis to, persons considering a possible business relationship with the Company (defined in the offering package). This Presentation is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instrument of the Company. No offer of securities shall be made except by means of a private placement memorandum meeting the requirements of the Securities Act of 1933, as amended, and applicable regulations of jurisdiction in which such an offer may be made. Any reproduction of this Property Summary, in whole or in part, or the disclosure of its contents, without the prior written consent of the Company, is prohibited. WealthBCI makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. Certain information presented or relied upon in this presentation has been obtained from third party sources believed to be reliable, however, we do not guarantee the accuracy, completeness or fairness of the information presented. These materials are not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice. Actual transactions described herein are for illustrative purposes only, are presented as of underwriting and are not indicative of actual performance, and were selected based on objective, non-performance factors such as asset-type, geography or transaction date, among others. Before making an investment decision with respect to any investment, investors are advised to carefully read the related final documentation and offering memorandum documents. No offer of securities shall be made except by means of a private placement memorandum meeting the requirements of the Securities Act of 1933, as amended, and applicable regulations of jurisdiction in which such an offer may be made. Any reproduction of this Property Summary, in whole or in part, or the disclosure of its contents, without the prior written consent of the Company, is prohibited.